How to buy a used yacht profitably and not to be cheated? Legal nuances

In fact, it is impossible to buy an old yacht profitably, but you can minimize your losses and not buy a real cue ball. To do this, you will need your experience ownership, as well as an experienced mechanic who will identify obvious problems with the cost of initial repairs. After repair, the maintenance of the boat requires 5-15% per year of its value. To compensate for the annual costs, we sometimes offer to rent out.

From the experience of Bimbarent, there are two options for how to save money. The first is to buy a used one for several people. That is, when you share the costs for a group of friends. The downside is that your family (wife) will most likely be against sharing the boat. The second option is to buy a five year old vessel from a European charter company. Here you need to take into account that it will have poor equipment and worn-out units. But if you have a mechanic plus smart craftsmen, then you can get involved in this venture.

Do yacht brokers help?

If you are buying a boat for the first time abroad, a broker will help you reduce the time of searching & delivering.

According to the experience of Bimbarent, Ukrainian brokers do not care much for the transaction to be profitable for you. You will be provided with several options to suit your budget. Then they will provide a video with the technical condition plus a certain document “to believe what was said”. After payment, any technical surprises lie on the shoulders of your financial responsibility. The commission of a yacht-broker depends on the level of your involvement and understanding of all ship re-registration processes. On average, it is from 0.5% to 5%. Here is the simplest advice: before buying a yacht, come see it yourself.

Can I find a used yacht in good condition?

You can google different European sites where there is a catalog with motorboats for sale. But it is likely that an agent (broker) will participate in the sale plus purchase transaction, which partially acts as a party to the sale & purchase agreement with a number of rights and obligations. Buying a used one without a broker is possible if you know how to renew the rights to the ship.

How are things going with the new yachts?

The price of a new boat that you see on the shipyard website can be multiplied by one and a half. How so? The set shown in the pictures is not true. Base motors, base trim, also base-content will be calculated. Secondly, the margin of an official dealer ranges from 10 to 30% on average (it is sold not by the shipyard, but by the dealer). The percentage depends on the number of redeemed buildings per year. As a rule, the final cost also does not include customs clearance, VAT and shipping costs.

Inspection of the boat by a qualified surveyor

We know it sounds terrible, but when buying a used yacht, assume the worst case scenario, not the best. Check everything from light bulbs to the operation of the stove, walkie-talkies and the engine at full speed (how to check the engine). If you are told that there are 10 lifejackets on board, verify their completeness, also expiration dates, as well as the validity of firefighting equipment. Remember, all the little things affect the final price and your savings during the first MOT. If you are told that all the latrines are working, then flush several times in the toilets – check-out the operation of the pumps for water under the floorboards on the lower tier. Also, do not forget about the operation of the black waste tank.

While you are running around the yacht, checking the basic equipment, turn off the mains from the shore charger in advance and turn on all refrigerators, lights. So in a couple of hours you will understand by the voltage how quickly the batteries run down. If they are worn out, feel free to ask for a replacement. Remember that on large motorboats, the number of batteries can be up to 12 or more. It also happens that on 10-year-old boats, all electrical wiring has been changed. Specify immediately what has changed and what has been upgraded from electrical equipment.

On sailing, check the condition of the ropes, sometimes they are in poor condition and can break under heavy load. Look under the floorboard there are large screws with nuts filled with paint. From the chips of this paint, it is possible to determine the fact that the keel hit the shore. If the paint is damaged, cracked, or seeping water, be sure to fix it. Also revify the operation of the anchor winch, find out its length, whether there is a chain marking and a remote control.

If you like the ones, it is best to come for inspection with your mechanic (surveyor – an inspector who inspects the property). While you are interrogating the previous owner, your mechanic will look for hidden technical flaws in the vessel.

Another recommendation: do not rush to immediately pay the entire amount of the deposit. Come again on ship in a week. Sometimes after your first stress check on the boat, everything can stop working: one of the motors fails, the ice maker burns out, the water pump breaks, the diesel generator fails, etc. If by the second visit they managed to fix everything, then the problems are insignificant.

As you already understood, when inspecting a sailing or motorboat, fix even the most obvious damage. Do not assume that because of their obviousness, they will be taken into account by the owner and affect the final purchase price. Everything depends on you!

And we almost forgot about the experienced “outbidders”! Someone manages to agree on the final price for free transportation to the new location of the vessel at the expense of the seller (within the country). If we are talking about a 15-meters yachts, then the savings will be several thousand dollars for every 1000 km of travel (fuel and crew fees on board).

Legal aspects when buying & selling

Avoid verbal agreements. The standard sales contract is the MYBA (Mediterranean Yacht Brokers Association) document. It specifies the estimated cost, the amount of the advance and the conditions for its return, the date the transaction was completed, the procedure for making payments, the place where the boat was received, the terms of delivery, the results of the negative technical inspection, etc.

Check the seller’s documents confirming the ownership. This can be done by requesting a builder’s certificate, a bill of sale, or by contacting the ship’s register. In addition, the ship register will show whether there are any encumbrances on the ship. We also recommend that you ask the buyer to provide proof of payment for parking in the marina, clarify about the insurance policy and whether there are bills for the repair of the vessel.

If everything suits you, then together with the contract, prepare an inventory application – this is an inventory / specification of items and equipment that should be transferred to you along with the yacht.

After the transfer of the boat, the seller must reflagrate (exclude it from the current register). You can then flag your yacht.

Another aspect is the execution of an insurance policy. It is requested in European marinas.